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MCHP vs TXN
Which Stock Would AI Choose? Microchip Technology (MCHP) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- MCHP shares declined approximately 10% over the past 30 days amid analyst price target reductions and leadership changes, trading near $74 as of late July 2026.
- TXN reported strong second-quarter 2026 results with revenue up 23% year-over-year and raised guidance, supported by AI data center demand, with shares closing near $276 on July 31, 2026.
- Both companies operate in the semiconductor sector, with MCHP focused on embedded control solutions and TXN emphasizing analog chips for industrial, automotive, and data center applications.
- MCHP announced the acquisition of Hailo to bolster AI capabilities, while multiple analysts raised price targets for TXN following its earnings beat.
- Market sentiment has favored TXN in recent weeks due to consistent earnings delivery and broader AI-related tailwinds compared to MCHP’s near-term volatility.
- Relative performance shows TXN with stronger year-to-date gains exceeding 60% in some reports, versus more modest or negative recent momentum for MCHP.
Introduction
This comparison examines Microchip Technology (MCHP) and Texas Instruments (TXN), two established semiconductor companies, to highlight differences in business focus, recent market performance, and positioning within the current environment. Both firms serve overlapping end markets such as industrial and automotive but differ in product emphasis and exposure to emerging areas like artificial intelligence infrastructure. The analysis draws on verifiable developments from recent market activity to assist traders and investors evaluating relative momentum, risk profiles, and sector dynamics without favoring either security.
MCHP Overview and Recent Performance
Microchip Technology (MCHP) provides smart, connected, and secure embedded control solutions, serving a wide range of industries with microcontrollers and related products. In recent weeks, the stock experienced downward pressure, declining roughly 10% over the prior 30 days to close at $74.29 on July 31, 2026, following analyst price target cuts and the announcement of a chief operating officer resignation. Broader market activity reflected mixed sentiment, with the company also advancing an acquisition of Hailo to enhance artificial intelligence capabilities. Earlier fiscal results showed sequential revenue growth, though near-term share price behavior has been influenced by these leadership and rating adjustments.
TXN Overview and Recent Performance
Texas Instruments (TXN) specializes in analog semiconductors used across industrial, automotive, and data center applications. Recent market activity featured robust second-quarter 2026 results, with revenue rising 23% year-over-year to $5.46 billion and earnings per share reaching $2.14, accompanied by upbeat guidance citing broad-based demand including artificial intelligence infrastructure. Shares closed at $275.74 on July 31, 2026, after multiple analyst upgrades and price target increases. Performance in recent weeks has reflected positive momentum tied to earnings delivery and sector tailwinds in analog components.
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Head-to-Head Comparison
MCHP and TXN both operate within the semiconductor industry yet differ in core offerings: MCHP emphasizes embedded control and microcontroller solutions, while TXN focuses on analog chips with notable exposure to data center and industrial recovery themes. Recent momentum has contrasted sharply, with TXN benefiting from earnings beats and AI-driven demand that prompted analyst upgrades, whereas MCHP faced near-term share price declines linked to specific corporate developments. Risk factors include valuation sensitivity for both, though TXN has shown greater stability in trend consistency amid broader sector rotation. Market sentiment currently tilts toward analog and infrastructure plays, creating trade-offs between MCHP’s AI acquisition catalyst and TXN’s established revenue diversification.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings delivery, and relative positioning in recent market activity, Tickeron’s AI would currently assign a higher probabilistic preference to Texas Instruments (TXN) over Microchip Technology (MCHP). This assessment reflects stronger recent performance alignment with AI-related catalysts and broader demand recovery, though outcomes remain subject to ongoing market variables.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is MCHP is a StrongBuy and TXN is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
MCHP’s FA Score shows that 0 FA rating(s) are green whileTXN’s FA Score has 3 green FA rating(s).
- MCHP’s FA Score: 0 green, 5 red.
- TXN’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
MCHP’s TA Score shows that 5 TA indicator(s) are bullish while TXN’s TA Score has 3 bullish TA indicator(s).
- MCHP’s TA Score: 5 bullish, 3 bearish.
- TXN’s TA Score: 3 bullish, 5 bearish.
Price Growth
MCHP (@Semiconductors) experienced а +2.12% price change this week, while TXN (@Semiconductors) price change was -1.79% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +1.91%. For the same industry, the average monthly price growth was -4.19%, and the average quarterly price growth was +45.30%.
Reported Earning Dates
MCHP is expected to report earnings on Oct 29, 2026.
TXN is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Semiconductors (+1.91% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| MCHP | TXN | MCHP / TXN | |
| Capitalization | 42.2B | 250B | 17% |
| EBITDA | 1.18B | 9.68B | 12% |
| Gain YTD | 26.034 | 62.109 | 42% |
| P/E Ratio | 114.25 | 41.55 | 275% |
| Revenue | 4.71B | 19.5B | 24% |
| Total Cash | 240M | 7B | 3% |
| Total Debt | 5.54B | 14.1B | 39% |
MCHP | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 55 | 57 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 82 | 31 | |
SMR RATING 1..100 | 90 | 28 | |
PRICE GROWTH RATING 1..100 | 59 | 49 | |
P/E GROWTH RATING 1..100 | 99 | 30 | |
SEASONALITY SCORE 1..100 | 50 | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TXN's Valuation (64) in the Semiconductors industry is in the same range as MCHP (74). This means that TXN’s stock grew similarly to MCHP’s over the last 12 months.
TXN's Profit vs Risk Rating (31) in the Semiconductors industry is somewhat better than the same rating for MCHP (82). This means that TXN’s stock grew somewhat faster than MCHP’s over the last 12 months.
TXN's SMR Rating (28) in the Semiconductors industry is somewhat better than the same rating for MCHP (90). This means that TXN’s stock grew somewhat faster than MCHP’s over the last 12 months.
TXN's Price Growth Rating (49) in the Semiconductors industry is in the same range as MCHP (59). This means that TXN’s stock grew similarly to MCHP’s over the last 12 months.
TXN's P/E Growth Rating (30) in the Semiconductors industry is significantly better than the same rating for MCHP (99). This means that TXN’s stock grew significantly faster than MCHP’s over the last 12 months.
| MCHP | TXN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 68% | N/A |
| Stochastic ODDS (%) | 2 days ago 77% | 2 days ago 64% |
| Momentum ODDS (%) | 2 days ago 63% | 2 days ago 67% |
| MACD ODDS (%) | 2 days ago 70% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 62% |
| TrendMonth ODDS (%) | 2 days ago 76% | 2 days ago 59% |
| Advances ODDS (%) | 10 days ago 67% | 7 days ago 60% |
| Declines ODDS (%) | 2 days ago 74% | 11 days ago 58% |
| BollingerBands ODDS (%) | 2 days ago 74% | N/A |
| Aroon ODDS (%) | 2 days ago 73% | 2 days ago 64% |
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MCHP and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCHP has been closely correlated with MCHPP. These tickers have moved in lockstep 98% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCHP jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To MCHP | 1D Price Change % | ||
|---|---|---|---|---|
| MCHP | 100% | -1.95% | ||
| MCHPP - MCHP | 98% Closely correlated | -1.74% | ||
| ADI - MCHP | 79% Closely correlated | -0.23% | ||
| TXN - MCHP | 79% Closely correlated | -1.65% | ||
| NXPI - MCHP | 78% Closely correlated | -1.26% | ||
| ON - MCHP | 76% Closely correlated | +2.72% | ||
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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | -1.65% | ||
| MCHP - TXN | 81% Closely correlated | -1.95% | ||
| MCHPP - TXN | 80% Closely correlated | -1.74% | ||
| ADI - TXN | 80% Closely correlated | -0.23% | ||
| ON - TXN | 72% Closely correlated | +2.72% | ||
| NXPI - TXN | 71% Closely correlated | -1.26% | ||
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